A lawsuit was filed on Wednesday by a coalition of industry groups and businesses, challenging a rule implemented by the Biden administration. This rule mandates vehicle manufacturers to make significant improvements in the fuel economy of their fleets in the upcoming years.
Under the rule set by the National Highway Traffic Safety Administration (NHTSA), vehicle manufacturers will have to gradually enhance the fuel efficiency of their vehicles. By the year 2032, it is expected that vehicles from that model year will have an average efficiency of 51.4 miles per gallon. However, industry groups argue that the NHTSA’s rule should be invalidated as they believe the agency has exceeded its legal authority. They claim that the rule is in violation of federal law as it is deemed “arbitrary, capricious, an abuse of discretion, and not in accordance with law.”
The regulation proposed by the Biden administration would necessitate auto manufacturers to significantly enhance the current fuel economy of their vehicles. The Environmental Protection Agency estimated that the average efficiency for vehicles from the 2023 model year was only 26.9 miles per gallon, which was a slight increase of one mile per gallon from the previous year. Interest groups who are suing the Biden administration over this rule believe that the ambitious fuel efficiency standards are ultimately intended to phase out vehicles powered by liquid fuel, as stated in a press release.
“Combined with tailpipe emissions standards from D.C. and California bureaucrats, this is yet another attempt to circumvent Congress and effectively ban new vehicles using liquid fuels that American drivers rely on every single day,” American Petroleum Institute Senior Vice President and General Counsel Ryan Meyers said in the release.
The Biden administration recently implemented a regulation in March that aims to control carbon emissions from vehicle tailpipes. This regulation would mandate that 67% of light-duty vehicles sold post model year 2032 must be electric vehicles or hybrids. The Department of Energy asserts that enhancing the fuel efficiency of American vehicles will lead to reduced spending on gas, combat climate change by cutting down on carbon emissions, and reduce the nation’s reliance on foreign oil. The NHTSA predicts that the costs associated with this rule would amount to $24.5 billion, while the benefits would total $59.7 billion.
Various organizations have filed lawsuits against the Biden administration regarding its fuel efficiency regulation. These include car dealerships, agricultural interest groups, and the American Petroleum Institute, which represents the oil and gas industry. Agricultural groups opposing the NHTSA’s regulation argue that the corn industry benefits from ethanol being included in liquid fuel, and they fear that the regulation could drive up the costs of farm vehicles.
“Once again, we have a federal agency trying to force a one-size-fits-all solution on the American consumer,” Minnesota farmer and National Corn Growers Association President Harold Wolle said.
